Millet handset China's first to depress South Korea's GDP?

The risk of South Korea's economic dependence on China has been superficial. Exports fell 2.6% per cent year-on-year, the biggest drop since the 2008 financial crisis, according to a July-September report by the Bank of Korea (central bank) on gross domestic product (GDP) letters of October 24. This is largely because of a slowdown in South Korea's smartphone-related exports as China's economy slows and Chinese companies rise. And in terms of access to direct investment and tourist consumption, South Korea's propensity to rely on China is growing, and fears of over-reliance on China are widening. With China's Beijing Millet technology and other competition intensified, Samsung electronic smartphone exports were affected, which has a negative impact, the South Korean bank economic statistics director Zheng Yingze when the export decline, the rare mention of specific enterprises. GDP grew by 0.9% in real July-September and grew by less than 1% in 4 consecutive quarters. Exports and equipment investment are a drag on GDP growth. In terms of exports, liquid-crystal displays (LCDs) and chemical products, which are mainly exports to China, have grown sluggish, while transport machinery such as aircraft and automobiles has been sluggish in terms of investment in equipment. South Korea's exports accounted for nearly half of GDP, while exports to China accounted for about One-fourth of the total. From a macro perspective, the South Korean economy is affected by the slowdown of China's economic growth; micro-level, Chinese companies are improving competitiveness, and South Korean companies in the Chinese market is in the field of bitter struggle is also increasing. 40% of LG's chemical sales came from the Chinese market, with the combined operating profit falling 31% from a year earlier, just 357.5 billion won, in a slump. The chemical industry has become increasingly competitive with the price of general products as a result of China's increased production campaign. In addition, the won's continued appreciation of the yen has been mired in tough competition with Japanese companies. The quality competition between Korean enterprises and the developed countries, as well as the price competition with Chinese enterprises are becoming more and more intensified. More and more people are worried about the loss of competitiveness in South Korea sandwich phenomenon. Exports to China in September to increase, but the South Korean IM Securities Research Center Director Li Zhongyu said the future of Chinese exports will be difficult to increase significantly. The competitiveness gap between Chinese and Korean companies is narrowing and it will become increasingly difficult to attack the Chinese market. In addition, the dependence on China is becoming more and more obvious in terms of accepting direct investment. According to the South Korean Ministry of Industry and Trade resources Summary of the foreign direct investment trend results, in terms of the declaration, 2014 1 ~ September investment was 38% higher than the previous year, increased to 14.8 billion U.S. dollars. Among them, the United States grew 6%, Japan reduced 17%, and Chinese investment increased by 230%. Although the actual amount is only 1 billion U.S. dollars, the number is small, but its influence is steadily improving. In terms of tourism, the number of Chinese tourists visiting South Korea in 2013 was 4.32 million, which accounted for 35% of the total number of foreign visitors to Korea. According to South Korea think-tank Industry Research Institute statistics, Chinese tourists bring economic benefits for the Year 13 trillion won (about 75.4 billion yuan) above, to South Korea's gross domestic product (GDP) of nearly 1%. It is expected that China's 5 million visitors to Korea in 2014 have become a foregone conclusion, and the shadow of the Korean economySound will be further improved. South Korea's largest duty-free shop in 2014, sales are expected to grow 20% year-on-year, to 4.2 trillion won. Among them, Chinese consumption is expected to account for 57% of overall sales. In 2012, the proportion of Korean consumption was 40%, the Japanese were 22%, the Chinese were 28%, and in 2014 the Koreans fell to 28% and the Japanese fell to 6%. The acceptance of China's direct investment and the increase in Chinese tourists have contributed to South Korea's economic development, but the risks will increase if reliance on China is increased. The enterprise cadre of Lotte duty-free shop said, 2012 (China, Japan and Korea) 3 countries accounted for about 30% of the state is more ideal.